Learn how these plans work, the cost, the best companies, see sample applications, and how to avoid a two-year waiting period.
Topics covered in this article
How Does Burial Insurance For Seniors Work?
Burial insurance for seniors, which is also known as funeral insurance or final expense insurance, is a type of no medical exam whole life insurance policy meant to pay for your burial and other final expenses.
The cash payout from the policy will give your family the money necessary to pay for cremation costs, burial costs, outstanding debts, medical bills, credit card debts, or anything else. If all the money is not spent on the funeral, your beneficiaries can use the remaining money any way they want.
Because a burial policy is a type of whole life insurance, the premiums will never increase, the death benefit won’t decrease, it lasts forever and builds cash value. The coverage amounts are generally smaller- usually $50,000 or less. One of the most unique elements of a burial insurance policy is the lenient underwriting. Despite very severe health issues, seniors can still qualify for a new policy.
Types Of Policies For Seniors
There are two types of burial insurance plans for seniors.
- Simplified issue: These plans are the least expensive and can offer immediate peace of mind because the full death benefit pays out starting on day one (no waiting period). You don’t have to take a medical exam to qualify, but you must answer health questions.
- Guaranteed issue: Commonly referred to as “guaranteed acceptance,” these plans have no health questions because your approval is guaranteed. They are more expensive than simplified issue policies, and there’s always a two-year waiting period. If you die during the waiting period, the insurance company will only refund your premiums plus a tiny amount of interest. The waiting period does not apply to accidental death.
How Much Does Senior Final Expense Insurance Cost?
The average cost of funeral insurance for seniors is about $50-$150 per month for a policy in the $10,000-$15,000 range.
Your net price will vary based on your health, age, gender, state of residence, and the amount of coverage you buy.
| Age | Female $10,000 Simplified Issue (Monthly Rates) | Female $10,000 Guaranteed Acceptance (Monthly Rates) | Male $10,000 Simplified Issue (Monthly Rates) | Male $10,000 Guaranteed Acceptance (Monthly Rates) |
|---|---|---|---|---|
| 45 | $22 | $28 | $27 | $33 |
| 50 | $24 | $30 | $30 | $36 |
| 55 | $27 | $38 | $35 | $45 |
| 60 | $32 | $42 | $43 | $55 |
| 65 | $41 | $51 | $54 | $66 |
| 70 | $51 | $69 | $70 | $89 |
| 75 | $71 | $98 | $99 | $121 |
| 80 | $98 | $140 | $139 | $166 |
| 85 | $135 | $170 | $192 | $230 |
How To Get Funeral Insurance For Seniors With No Waiting Period
You have to answer health questions to get a policy with no waiting period.
You don’t have to take a medical exam but must complete a health questionnaire.
Remember that most people, despite past health ailments, can qualify for immediate coverage.
Don’t mistakenly assume you will have a waiting period due to your past ailments.
That is not true for most applicants. Unless you have a terminal illness, heart failure, or dementia, you can probably qualify for an immediate coverage policy.
If you want a plan that immediately covers you, call us at 1-800-644-2926. We have over 15 different insurance companies that we partner with.
If immediate coverage is possible for you, we’ll find it.
Which Companies Have The Best Burial Insurance For Seniors?
There are dozens of final expense life insurance companies for seniors. And while there is no way to select just one for each person, we narrowed it down to the top five.
If you’re a senior and need burial insurance coverage, check out these five companies because your best burial insurance policy is probably with one of them.
1) Mutual of Omaha
Brochure Sample Policy Sample Application
Living Promise whole life insurance from Mutual of Omaha is one of the least expensive burial insurance policies for seniors.
Their level benefit plan has no waiting period if you’re approved.
You will probably qualify for a Mutual of Omaha burial insurance policy unless you’ve had a recent heart attack, stroke, cancer, or significant chronic illnesses.
On a side note, they also offer inexpensive life insurance coverage for babies if that interests you.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$40,000 | |
| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Mutual of Omaha products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes to 2 Business Days | |
Common health conditions still eligible for no waiting period coverage: Aneurysm Arthritis Asthma Blindness Blood clots > 2 years ago Blood thinners Cancer > 4 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis A or B High blood pressure High cholesterol Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 2 years ago Tumors (non-cancerous) |
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2) Aetna
Aetna is probably your company if you need life insurance for a senior over age 80. Shockingly, they will accept new applicants as old as 89.
They offer immediate no-exam life insurance options to seniors with serious health issues such as COPD, diabetes, Parkinson’s, multiple sclerosis, and atrial fibrillation, to name a few.
Another positive feature of Aetna is its very lax rules regarding beneficiaries. For example, they will allow you to name a friend or funeral home as the beneficiary. Not all final expense carriers will allow that.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 40-89 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,000-$50,000 (varies by age) |
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| States Available: All States (except New York) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) |
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| Application Details | Where to Apply: Agencies licensed to sell Aetna products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes-3 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Chronic bronchitis Circulatory surgery > 2 years ago COPD Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic coma > 2 years ago Diverticulitis Epilepsy Fibromyalgia Graves’ disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis > 2 years ago High blood pressure High cholesterol Insulin shock > 2 years ago Lupus Multiple sclerosis Obesity Over 85 life insurance Pacemaker (installed > 1 year ago) Parkinson’s disease Sarcoidosis Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors (noncancerous) |
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3) Royal Neighbors of America
Royal Neighbors of America isn’t a name you’ll see on TV, but that doesn’t mean they aren’t trustworthy or financially sound. Just look at how long they’ve been in business and their financial ratings.
Seniors with diabetes, past heart issues, past instances with cancer, and many other high-risk health issues can still qualify for their level benefit senior life insurance.
In addition, their prices are in line with most other final expense companies, so you can trust that you’re paying a fair price with them.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 50-80 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $7,000-$30,000 | |
| States Available: All States (except AK, AL, HI, LA, MA, NH, NY) |
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| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: None | |
| Application Details | Where to Apply: Agencies licensed to sell Royal Neighbors products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 10 Minutes | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 2 years ago Circulatory surgery > 2 years ago Crohn’s disease Depression Diabetes (type 1 or 2) Diabetic neuropathy Diverticulitis Fibromyalgia Grave’s disease Heart attack > 2 years ago Heart surgery > 2 years ago Hepatitis > 2 years ago High blood pressure High cholesterol Home health care Multiple instances of cancer Pacemaker (installed > 2 years ago) Retinopathy Schizophrenia Scleroderma Severely overweight Sleep apnea Tia mini-strokes Tumors |
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4) American Amicable
There are many cases where American Amicable has the best funeral insurance for seniors.
For example, people with mental health issues such as anxiety, depression, bipolar disorder, or schizophrenia can get rock-bottom rates and no waiting period coverage.
Their smoker rates are among the lowest in the nation. Also, pipe and cigar users can actually get a non-tobacco rating.
That could save you as much as 40% on your monthly premium!
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 50-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $2,500-$50,000 (varies by age) | |
| States Available: All States (except CT, ME, MT, NH, NY, VT) | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: None | |
| Application Details | Where to Apply: Agencies licensed to sell American Amicable products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: < 10 minutes | |
Common conditions still eligible for no waiting period coverage: Afib Aneurysm > 3 years ago Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 3 years ago Circulatory surgery > 3 years ago Crohn’s disease Depression Diabetes (type 2) Diverticulitis Fibromyalgia Grave’s disease Heart attack > 3 years ago Heart surgery > 3 years ago Hepatitis > 3 years ago High blood pressure High cholesterol Pacemaker (installed > 3 years ago) Schizophrenia Scleroderma Sickle cell anemia Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 3 years ago Tumors (non-cancerous) |
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5) Transamerica
Transamerica’s burial insurance plans combine low premiums with lax underwriting. They are an excellent carrier to consider if you need a policy without a waiting period.
For example, they will approve someone for immediate coverage if they have COPD, Parkinson’s, angina (chest pains), or diabetic neuropathy, just to name a few.
They are one of the best life insurance companies if you deal with pre-existing high-risk conditions.
Plus, if you’re in good health, their prices are some of the lowest you can find on the market.
For example, they offer some of the cheapest burial insurance for seniors over 70.
| Product Details | Policy Type: Whole Life Insurance |
| New Applicant Age Range: 45-85 | |
| 2-Year Waiting Period: No (subject to underwriting approval) | |
| Coverage Amount Range: $1,000-$50,000 (varies by age) | |
| States Available: All States | |
| Product Benefits | Premiums Stay the Same Forever: Yes |
| Builds Cash Value: Yes | |
| Policy Duration: Lifetime | |
| Optional Riders: Accidental Death (2X the payout for accidental death) | |
| Application Details | Where to Apply: Agencies licensed to sell Transamerica products (you can't buy this plan directly from them) |
| Phone Number to Apply: 1-800-644-2926 | |
| Medical Exam Required: No | |
| Guaranteed Acceptance: No | |
| Application Approval Time: 15 Minutes- 5 Business Days | |
Common conditions still eligible for no waiting period coverage: Afib Angina (chest pains) Aneurysm (if surgically repaired) Arthritis Asthma Bipolar disorder Blindness Blood clots Blood thinners Cancer > 4 years ago Chronic bronchitis Circulatory surgery > 1 year ago COPD Crohn’s disease Depression Diabetes (type 2) Diverticulitis Epilepsy Fibromyalgia Grave’s disease Heart attack > 1 year ago Heart surgery > 1 year ago Hepatitis High blood pressure High cholesterol Kidney disease (no dialysis) Lupus Multiple sclerosis Pacemaker (installed > 1 year ago) Parkinson’s disease Schizophrenia Scleroderma Seizures Sleep apnea Squamous/basal cell skin cancer Stroke/TIA > 1 year ago Tumors |
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How To Find The Best Burial Insurance For Elderly People
No matter what product you’re buying, it’s no secret that you should compare offers from multiple companies before you commit to one.
The same is true when looking for an affordable final expense policy for seniors.
Browse websites like Choice Mutual that allow you to compare quotes from multiple insurance providers. That will give you a good sense of what coverage will likely cost you.
In the end, if you want a life insurance policy with no waiting period at the lowest price possible, you will need to speak with an agent.
It’s helpful to remember that most burial insurance companies that sell coverage directly to the consumer (no agent involvement) usually impose a two-year waiting period before you’re insured.
Generally speaking, only licensed agents can offer the best rates and plans that pay out the full death benefit immediately.
But don’t speak with just any agent. Here are the criteria you should look for when selecting an agency to work with:
- Independence: Be sure to work with an independent agency with access to at least ten insurance companies. They will compare offers from multiple providers to match you with the best one. It’s highly advisable to avoid “captive” insurance companies. Those are companies that have only one insurance company they can offer you. State Farm is one such example. If you ever talk to a State Farm agent, they cannot offer you any other insurance company. So be sure to work with a broker who can choose from dozens of insurers to find the best one for you.
- Reputation: Check their online reputation to ensure past customers were satisfied with their service. A bad online reputation usually indicates lousy insurance products and poor customer service.
- Expertise: It’s hard to be a jack of all trades in the insurance business. Be sure to find one that specializes in funeral insurance for seniors. That way, you know you’re dealing with an expert rather than a novice.
Remember, there is no free burial insurance for seniors. Avoid any insurance agent or company that advertises in such a misleading way.
An honest independent agent is your surest path to finding the best life insurance for seniors.
Be Wary Of Term Insurance For Final Expense Coverage
Buying a term life insurance policy to cover end-of-life expenses is risky.
At the latest, a term life plan will generally expire around age 80.
AARP’s final expense insurance is a prominent example of a term life offering for burial coverage. Their primary policy is a term plan that completely expires once you turn 80.
Globe Life Insurance is another option that expires in your 80s.
Both AARP and Globe have the same marketing tactic. They dazzle seniors with their lower-cost term life insurance, hoping they’ll be attracted to the lower prices (which they usually are).
Because term insurance expires, it will always have less expensive premium payments than whole life.
They are banking on policyholders never stopping to consider why the insurance is cheaper.
Sadly, many unsuspecting consumers fall for that trick. Then on their 80th birthday, they learn the truth because they get a letter telling them they are uninsured.
If you need a life insurance plan to cover the cost of a funeral, you should opt for the peace of mind that permanent life insurance offers.
Term insurance will likely lead to a financial burden for your family members because they will have to pay for your burial costs.
So be very wary of AARP life insurance for seniors for these reasons.
Coverage For Elderly Parents
In short, you can buy funeral expense insurance for your parents or grandparents.
Here’s what you need to know:
- They must agree to the policy being issued. You cannot buy life insurance for a parent without their knowledge and consent. If your parents do not want to participate, just put money into a savings account or buy a pre-paid burial from a funeral home. Even if you have power of attorney, they must still answer the questions and consent. Under no circumstances can you do it for them.
- They’ll need to answer health questions if you want immediate coverage for them. You should gather some details about their past and current health issues before speaking with an agent. With their health information, your agent can determine which company (if any) will approve them for an immediate coverage plan.
Just know that you don’t need your parents on the phone when you initially speak with an agent.
For example, at Choice Mutual, we can give you life insurance quotes, answer your questions and familiarize you with the application process.
Then when you’re ready to apply formally, we’ll coordinate a time to connect with both you and your parents.
Frequently Asked Questions
At the very least, everyone who is 45-85 can obtain a guaranteed acceptance policy. However, it’s important to note that all guaranteed issue policies have a two-year waiting period. If you die during the waiting period, the insurer only refunds your premiums plus interest. Seniors should opt to apply for coverage that has a health questionnaire. If approved, the policy will likely be cheaper and not have a waiting period. There are still options for people outside of 45-85, but you’ll have to medically qualify for the coverage.
Burial insurance, which is also known as funeral or final expense insurance, is a simplified issue whole life policy that’s meant to pay for your end-of-life expenses. No medical exams are required and prior health issues won’t deny you coverage. It payouts a quick cash benefit, typically within 24-48 hours, so your loved ones can pay for your final expenses.
Burial insurance is life insurance so the net result will be a quick cash payout to your beneficiary(s). The money from the payout allows them to cover the costs associated with burial, cremation, memorial service, and funeral home services, adding up to thousands of dollars.
When comparing a burial policy vs life insurance, it’s helpful to remember that burial insurance is a type of life insurance. To be more specific, burial insurance is a particular type of whole life policy with small coverage options and a fast claim payout.
All insurance companies have a minimum and maximum age for new applicants. Typically, the minimum age is around 45 or 50. Typically, 85 is the oldest most burial insurance companies will accept a new applicant. However, there are a few options for people between 86 and 90, but not many.
There are absolutely no hidden fees when you buy final expense insurance. Also, there are no down payments when you submit your application. Your monthly payment is the only money you’ll ever pay.
Yes, you can purchase burial insurance for one of your parents. However, they will need to be involved in the application process even though you’re paying for the coverage.
No. Since final expense insurance is whole life insurance, it will pay out a tax-free cash benefit. Your beneficiaries can use the money as they see fit (and keep any leftover money). They will never incur a tax burden because of the policy payout.
Cash value in a life insurance policy is like a behind-the-scenes savings account that accumulates value over time. Every time you make a payment, a portion of your payment goes towards the insurance cost. At the same time, a much smaller amount goes into a behind-the-scenes savings account called the cash value. You may elect to borrow from the cash value that has accumulated.
As noted in the question above, seniors’ whole life burial policy will accrue cash value over time. You are entitled to borrow from these accrued funds. The money you borrow is considered a loan against the policy when you do so. The insurance company will charge interest on the loan. Every company has different interest rates, but most are within a 5%-10% range.
Here’s the thing to understand about loans
Any outstanding loans on your policy will reduce your death benefit accordingly. If you have a loan out on your policy, it will reduce the death benefit by the total amount of the outstanding loan.
Here is a helpful tip about life insurance policy loans.
You must work towards paying back your loan if you ever take one. Remember, interest will always accrue, increasing your loan’s total value. The loan will grow if you never pay it back, reducing your death benefit. The last thing you would want is for your family not to be left with enough money to pay your final expenses because you never took care of an outstanding loan.
This provision is present in every life insurance contract, no matter what type of life insurance you buy or which company issues the policy. There are no exceptions to this rule.
The provision entitles the insurance company to investigate any death claim during the contestability period. The contestability period is usually two years. However, in some states, it’s only one year. Furthermore, some states disallow insurers to contest claims when replacing a life insurance policy.
The insurer will gather your doctor records to verify that you did not misrepresent your health at the application time. They are just trying to make sure that you didn’t withhold information about your health that would have prevented your insurability in the first place.
Should an insurer find information that would have caused them not to issue the policy initially, they will rescind it. When this happens, they will not pay the death claim. Instead, they will merely return all the premiums you paid into the policy. It’s also worth noting that the agent who sold you the policy will have to pay back all their commissions.
If they contest a claim and do not find health information that contradicts your answers on the application, they must pay the claim, and they will.
It depends on a few factors. First, the insurance company will request medical records from your physician(s). Second, once they receive all the required information, they are required by law to decide on the claim within 30 days.
Here’s the thing
Contestable claims can take 30 days. Then again, they can take six months. The determining factor is how long it takes for the insured’s physician(s) to deliver the insured medical records to the insurer. As long as there are outstanding records, the insurance company cannot process the claim.
We always urge beneficiaries to call each doctor daily. The goal is to encourage the physicians to return the records to the insurer so they can process the claim. In addition, when one of our clients passes away during the contestability period, we also call to apply pressure on the doctor’s office.
Ultimately, the quicker the medical records are received, the faster the insurance company can pay the claim.
After you turn 91, there are no more life insurance options. You can get coverage from age 86 to 90, but the options are minimal and vary by state. If you’re above 90, you should explore a pre-paid plan directly with a local funeral home. Also called “pre-need” insurance, a pre-paid is probably your only option above 90. It will likely be very expensive, and they may just require you to pay them in cash upfront.
There is no difference. It’s helpful to remember that “burial insurance” is just a marketing expression. Burial insurance is also commonly referred to as “funeral insurance,” “final expense insurance,” “cremation insurance,” or “end-of-life insurance.” All these labels have the same meaning.